Gold and silver extended drops after their steepest selloffs in years, as investors took profits on concern the dizzying surges in the precious metals in recent weeks had left them overvalued.
Spot gold traded near $4,090 an ounce after tumbling as much as 6.3% in the previous session, in the biggest intraday drop in more than a dozen years. Silver edged lower after being down by 8.7% at one point on Tuesday. The slumps came after technical indicators showed scorching rallies for both metals were likely overstretched.